The latest World Gold Council Gold Demand Trends report, which covers the period April-June 2013, confirms again how recent falls in the gold price were due to speculators selling paper gold rather than a decline in actual demand for physical gold.
Another respected hedge fund, the Pacific Group, has decided to convert one third of its hedge-fund assets into physical gold. The Pacific Group Ltd., which manages more than $100 million worth of assets, believes that gold will continue to rise as governments print more money to pay off debt, according to Bloomberg.
Gold rose $3.80 or 0.23% in New York yesterday and closed at $1,666.10/oz. However, there were more peculiar goings on in the gold market which saw one massive sell order knock prices lower, prior to gold gathering itself and moving higher.
Even before the World Gold Council's benchmark exchange traded gold fund opened for sales it was heaped with several layers of conspiracy mongering. The worst charge is that ETF gold really has no bullion underpinning its paper.